Last Monday, October 12, some of our members sold covered calls on Novavax (NVAX), strike price $113, expiry date today, October 16. (NVAX C 16OCT20 113.00) They received a premium income of $2.65 per share.
During the week, NVAX dropped to $111.42, so they lost $1.58 per share on the underlying. Subtracting that loss from the premium income of $2.65 per share received, our members gained $1.07 per share. ($2.65 minus $1.58 ) They could have done even better, much better! Something like that is possible anytime that the underlying security drops in price. It could still be done today. Here is how.You need to login to view the rest of the content. Please Login. Not a Member? You can now sign up for a one-month free trial membership. Join Us